HMRC Tax Problem Advice

Directors can sometimes struggle to keep their business afloat through tough times and keeping up with tax responsibilities can be even more challenging. If you are finding that your company is finding it difficult to keep up with their tax payments you will find some useful information in this HMRC hub. Please feel free to contact us at your earliest convenience for a free confidential meeting on your situation.

Advice on Specific HMRC Tax Issues

All companies, whether large or small, will have to engage with HMRC throughout the course of their existence.

If your company is having problems meeting its tax bill, you may be able to agree an arrangement with HMRC that enables you to pay your tax in instalments over a longer period of time. This is called a Time to Pay (TTP) arrangement.

If you are unable to make a tax payment when it is due, whether it is VAT, late PAYE / NICs, corporation tax or self-assessment income tax, you must contact HMRC as soon as possible.

If you have received a tax bill from HMRC that you are simply unable to pay, it’s essential you contact HMRC immediately to try and reach some sort of payment arrangement.

The latest figures show that the UK tax gap, the difference between the amount of tax due and the amount collected, fell to 6.5% between 2014 and 2015.

HMRC use debt collection agencies to pursue taxpayers for unpaid taxes.

Most company directors are probably well aware of the statutory redundancy payments their employees can claim if they have been working for the business for at least two years, but many directors are unaware that they may also be entitled to claim.

One of the weapons in HMRC’s arsenal is the ability to issue an organisation with a Notice of Requirement for VAT security where it believes there is an increased risk VAT will go unpaid.

HMRC’s objections to a strike-off application can be disappointing for directors who are genuinely trying to close down a failed venture and not deliberately avoiding paying tax.

If you or your company are unable to pay your VAT debt then it is important that you recognise that HM Revenue & Customs (HMRC) will not allow this position to continue indefinitely. Various surcharges and penalties for late payment will accrue which will be increasing your business costs at a time when you will want to reduce outgoing costs.

It is your responsibility to make sure your VAT is filed on time and any payment due is made before the deadline. Fail to do so and a range of different actions can be taken against you.

Importantly, the deadlines for submitting your VAT return online and paying HMRC any VAT you owe are the same. If you’re not sure when your VAT return and payment deadline is, you can check that in your VAT online account.

If you can’t pay your VAT on time or in full, you should contact HMRC’s Payment Support Service on 0300 200 3835 immediately to make them aware of the situation.

If you are registered to pay VAT then it is your responsibility to make sure your returns are submitted and paid on time.

As a taxpayer, it is your responsibility to make your PAYE and VAT payments on time. HMRC does not send reminder letters before PAYE or VAT payments become due, so you must be aware of the deadlines.

If you are a business owner facing financial pressure and are having trouble paying HMRC, you may have accumulated arrears of tax in relation to Pay as You Earn (PAYE) and National Insurance Contributions (NIC). HMRC have a strict process and various powers in dealing with late payment and are able to quickly identify late payers.

In April 2017, Corporation tax was cut to 19%, the lowest corporate tax rate in the G20. The cut is a dramatic fall compared with the 28% rate prior to the global financial crisis.

HMRC has the power to seek the recovery of National Insurance contributions (NICs) from an officer of the company personally if it believes the failure to pay is the result of fraud or negligence.

One of the primary reasons people choose to turn their company from a sole proprietorship or partnership into a limited company (ltd) is the extra protection this type of corporate structure affords.

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